MortgagesUndressed

Your credit score can go as low as 350. As high as 850. The lowest score I have been able to secure a loan for was in the high 400’s. The highest I have seen is near 850. How high is your score?

Don’t let this mans looks decieve you. He could have an 850 score. Most likely 700 however. It isn’t impossible for anyone to get to 700 with work and care.

This was reported by one of the faithful 25. My answer, get another loan officer.

Here is the link for your free credit report, mandated by congress.

It hit me the other day, the youth of the world are more responsible with their credit. I first noticed it in surprise when our grandaughter Kira was getting married and just had to have a home. She and Kelly came to my office for a loan approval.

I was shocked how high their credit scores were. I was impressed. I was reminded of that as I saw it recently with another young couple.

My mind went back to the pre credit scoring days, when I had to watch one young couple after another deal with not being able to buy now, they had credit to fix. It was a common embarrasment, watching one discover the affect of crummy credit of their new spouse or spouse to be.

FICO scoring has been a measuring stick easy to discuss. I think it has made young people more aware and more responsible.

YES!

Some people tend to delay working on things like this. Get your FICO. If it is under 680 figure out why, then fix it. If you need help, let us know.

I still dont know where Grandma got the P s and Q s thing.

But I do know what it meant. Add to that your FICO, check it regularly even if it costs a bit. Larry Cragun

OK it is still a small crowd. You can help that. Thanks.

The question. My FICO score dropped from nearly 800 to just under 600. How can that be? I have no late payments and only 1 recent inquiry.

The answer is the same for him as it is for many: the balances on all the credit cards went way up. This is a credit score killer.

In this case it brings out a couple of new twists. First, the cards are used for business. To purchase inventory. This is not a good idea. What I have done with Key Bank is get a business credit card for situations like this. It isn’t reported to the bureaus and doesn’t affect the score.

This is also a perfect use for an equity line of credit. This borrower could have easily accomplished either, especially with a near 800 credit score.

Keep those balances under 20% of the approved credit limits.
Larry Cragun

The beginning of another top 10 list: An important one. Your contributions are welcome.

1- Pay off, don’t close, and don’t use your Capitol One card.

2- Do not have running balances on your cards. The more you do, the lower you go.

3- At least Keep your balance to limit at 20% or less. Above this, the higher you go, the lower you go.

4- Don’t close accounts.

5- Use accounts, pay the invoice, at least every 6 months.

6- Don’t co-sign: If you have, get off ASAP, even by closing the acount if necessary.

7- If shopping, like for a car, only give personal information when you are for sure buying.

8- Every 6 months, take one account and apply for an increase in credit capacity - then don’t use up that capacity.

9- Keep running credit balances on as few cards as possible, shoot for 3 max.

10-Work at it, if you are in too deep, in finding new income that can go directly to debt pay down. Pay off the cards with lowest balances first.

It may seem like a small difference, 20 points. But it may be the difference in an important way.

Why shoot for a 720 FICO Score?

Here are 4 reasons, there are more.

1- It may make your loan approval require less documentation.

2- You may qualify for a higer loan amount.

3- You may qualify for a lower rate.

4- Some lenders require 720 for special programs.

Comment by Larry Cragun: One of the easiest ways to trash your credit score is to max out your limits. A FICO employee told me, she acted like it was hush hush, that when you exceed 20% of your approved amount of your credit limits your score starts to go down. She said as you come close to your limit, say $9,000 out of $10,000 it punishes your score severely. The greater percent you use up, the greater the effect compounds. Also, if you go over your limit, it is a massacre to your credit score, for a while.

It is this issue that is of importance to you. Make sure you read and understand this article. Pay off your Capitol One card and stop using it. Don’t cancel it. Just keep a 0 balance on it. More advice will be forthcoming later on this issue.

In this market environment, the credit card providers, these abusers of interest rates, are suffering huge setbacks. They have raised their interest rates and increased the payment they require monthly. A large amount of people have transferred their credit card debt to second mortgages on their homes. The point here, you should be able to at least transfer your balance to another provider, probably at a lower rate. DO It NOW!

A portion of the article from Dan Greens Mortgage Report.

Capital One called out on a national stage

Click above for the complete article off of Dans blog.